1. Organizational Effectiveness7
Organizational Effectiveness
The degree to which an organization realizes its goals

2. Contingency Effectiveness Approach
Draw value chain of an organization: inputs, internal transformation and outputs
Goal Approach to effectiveness is concerned with the output side
Indicators
Use: easily measurable, evaluate performance
Problems: multiple goals are conflicting
Some are difficult to measure
e.g. employee welfare etc.

3. Contingency Effectiveness Approach
Resource Based Approach:
Looks at the input side
Indicators: materials, capabilities, competencies
Use: valuable in Non-Profit Organizations (NPOs)
Problem: vague
Internal Process Approach:
Measures internal organizational health
Indicators: culture, team spirit, trust, undistorted vertical and horizontal communication, reward on performance
Use: stress on internal elements
Problem: output and environment ignored

4. How to develop capabilities and competencies

5. Balanced Effectiveness Approaches
Stakeholder Approach: .
Stakeholder
Effectiveness Criteria
Owners
financial return
Employees
satisfaction, pay
Customers
quality
Creditors
creditworthiness
Community
contribution to community
Suppliers
satisfactory transactions
Government
Obedience to law, regulations

6. Balanced Effectiveness Approaches
Competing Values Approach:
Around two values
focus (internal or external)
structure (stability vs. flexibility)

7. Balanced Effectiveness Approaches
Competing Values Approach:
Four models resulted:
HR model
Open systems model
Internal process model
Rational goal model
Use: brings together the competing forces under the umbrella of Effectiveness